Investor Relations Presentation Third Quarter 2020 (Published January 6th, 2021) 1 Safe Harbor Statement The following information contains, or may be deemed to contain, “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995). The words “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. You should not place undue reliance on these forward-looking statements. Although forward-looking statements reflect management’s good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date the statements are made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to: the duration and spread of the COVID-19 outbreak, mitigating efforts deployed by government agencies and the public at large, and the overall impact from such outbreak on economic conditions, financial market volatility and our business, including but not limited to the operations of our manufacturing and other facilities, our supply chain, our distribution processes and demand for our products and the corresponding impacts to our net sales and cash flows; risks related to our substantial indebtedness; our participation in markets that are competitive; the highly cyclical industries in which certain of our end users operate; uncertainty in the global regulatory and business environments in which we operate; our ability to prepare for, respond to and successfully achieve our objectives relating to technological and market developments, competitive threats and changing customer needs; the concentration of our net sales in our top five customers and the loss of any one of these; the failure of markets outside North America to increase adoption of fully automatic transmissions; the success of our research and development efforts, the outcome of which is uncertain; our failure to identify, consummate or effectively integrate acquisitions; U.S. and foreign defense spending; general economic and industry conditions; increases in cost, disruption of supply or shortage of raw materials or components used in our products; the discovery of defects in our products, resulting in delays in new model launches, recall campaigns and/or increased warranty costs and reduction in future sales or damage to our brand and reputation; risks associated with our international operations, including increased trade protectionism; labor strikes, work stoppages or similar labor disputes, which could significantly disrupt our operations or those of our principal customers; and our intention to pay dividends and repurchase shares of our common stock. Allison Transmission cannot assure you that the assumptions made in preparing any of the forward- looking statements will prove accurate or that any long-term financial goals will be realized. All forward-looking statements included in this presentation speak only as of the date made, and Allison Transmission undertakes no obligation to update or revise publicly any such forward- looking statements, whether as a result of new information, future events, or otherwise. In particular, Allison Transmission cautions you not to place undue weight on certain forward-looking statements pertaining to potential growth opportunities, long-term financial goals or the value we currently ascribe to certain tax attributes set forth herein. Actual results may vary significantly from these statements. Allison Transmission’s business is subject to numerous risks and uncertainties, which may cause future results of operations to vary significantly from those presented herein. Important factors that could cause actual results to differ materially are discussed in Allison Transmission’s Annual Report on Form 10-K for the year ended December 31, 2019 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020. 2 Business Overview 3 Allison Transmission at a Glance World’s largest manufacturer of fully-automatic transmissions for medium- and heavy-duty commercial vehicles – Nearly 60% global market share of fully-automatic transmissions – Virtually no exposure to cyclical Class 8 line-haul tractor market Allison is the premier fully-automatic transmission brand – Premium price component frequently specified by end users – Differentiated technology offering superior performance and lower total cost of ownership Well positioned for revenue and earnings growth – Further adoption outside North America – Expanding addressable market – Funded growth opportunities in asset light business model Strong cash flow generation and well-defined capital allocation policy 4 Allison Transmission at a Glance LTM(1) Net Sales by End Market Parts, Support Equipment and Other 22% Outside North North America America Off-Highway On-Highway 3% 52% Outside North America On-Highway 14% Defense 8% North LTM(1) Net Sales: $2.2 billion America Off-Highway (1) LTM 9/30/20. 1% 5 Global Market Leader The “de facto” standard in medium- and heavy-duty applications – Well established as standard in North America Increasing presence in emerging markets which today are predominantly manual Virtually no exposure to cyclical Class 8 line-haul tractor market Global On-Highway Fully-Automatic Share(1) Other(2) Allison ~40% ~60% (1) 2019 Units. Source: Allison and ACT Research. (2) Majority of “Other” volume is in North American Class 4-5 truck and European bus. 6 North America On-Highway End Market Underserved Core Addressable Market Underserved Class 8 Class 1-3 Class 8 Class 8 Tractor Class 4-5 Motor Home School Bus Class 6-7 Straight Metro1 (Linehaul) Vehicles Weight < 14 lbs 14 – 19 lbs 16 – 33 lbs 16 – 33 lbs 19 – 33 lbs 33 lbs+ 33 lbs+ 33 lbs+ (000s of lbs) 2019 Industry 11,843,394 119,464 16,345 35,340 117,624 94,510 77,855 170,091 Units Produced 2019 Allison 0% 16% 41% 84% 76% 74% 7% 0% Share ~30-40% of Allison’s North America On-Highway market volume is driven by municipal spending, reducing end-market volatility Multi-year opportunity to gain share in Class 4/5 with recent medium-duty commercial truck launches by Chevrolet, Navistar and Isuzu, exclusively with the Allison fully-automatic New opportunity to further grow share in Class 6/7 with the upcoming launch of the all-new Mack MD Series commercial truck, exclusively with the Allison fully-automatic Growing opportunity in Class 8 Metro(1)(2) and Tractor markets with the award-winning Allison 3414 Regional Haul SeriesTM fully- automatic transmission, with proprietary xFE and FuelSense® 2.0 technology, launched with Navistar in July 2020(3) Note: Analysis excludes Allison’s Transit/Coach Bus and Electric Hybrid Transit Bus volume. Source: Class 1-3 from WardsAuto North America Production – December 2019; Core Addressable Market and Class 8 Tractor from Allison and ACT Research. 1. “Metro” is a term for tractors that are used in urban environments, currently representing ~30% of the Class 8 tractor market. 2. Market opportunity for the 3414 Regional Haul Series (RHS) is approximately 25,000 units within the Class 8 Metro segment. 3. Upcoming releases for the 3414 RHS include the Freightliner M2 112 and the Cascadia 7 Strategic Priorities Expand global market leadership – Capitalize on improved developed markets demand – New vocational offerings Emerging markets penetration – Vocational ladder strategy – Increasing number of vehicle releases Continued focus on new technologies and product development – Address markets adjacent to core – Leverage core technologies for new products with minimal investment – Advanced fuel efficient and emissions reduction technologies – Alternative fuels and electrification initiatives Deliver strong financial results – Exploit capacity availability and asset light business model – Earnings growth and cash flow generation – Focus on margin sustainment – Well-defined capital allocation policy 8 Industry Leading EBITDA Margin EBITDA Margin1 45.0% 40.1% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% . Roper Gentex Graco Sensata Rockwell Eaton Parker Donaldson WABCO Cummins Hannifin 1. Fiscal year 2019 peer EBITDA provided by FactSet. EBITDA included above may not be consistent with such entity’s reported EBITDA or Adjusted EBITDA, if available. EBITDA Margin: EBITDA or Adjusted EBITDA divided by net sales. *See appendix for comments regarding the presentation of non-GAAP financial information. 9 Premier Industrial Company Global Market Leader and Premier Brand End User Value Proposition Diverse End Markets Significant Cash Flow Generation Well-Defined Capital Allocation Policy / Free Cash Flow Utilization Multiple Organic Growth Opportunities Leading Technology and Innovation 10 A Recognized Leader and Respected Brand Over 100 year history of providing high-quality innovative products and demonstrated value to end users Proprietary and patented technology developed over many decades